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01-02-2008, 05:08 PM
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#41
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Location: North of Montana
Posts: 2,769
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Our NW has tripled in the last 5 years. No idea what the return has been. Can't be bothered to look up how to calculate it.
This came by careful AA blind luck whatever (letting one stock become > 50% of NW). (Yes I have sold a lot to diversify but the damn thing keeps going up)
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There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
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01-02-2008, 06:39 PM
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#42
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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Quote:
Originally Posted by Want2retire
The OP can speak for hirself, but if one wants to see how well others did in the stock/bond market, real estate should be excluded. Real estate appreciation seems to be very much affected by regional real estate dynamics.
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What about the members on here who invest in real estate instead of the market ?
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01-02-2008, 07:03 PM
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#43
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by Moemg
What about the members on here who invest in real estate instead of the market ?
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Well, if it is an REIT like VGSIX or something, sure - - but if it is your own personal home, it does seem to me that the appreciation could be thought to have a strong regional component. So, althought I'm not trying to speak for the OP I am speculating that investments (rather than real estate such as a home owned in own's local area) is what was intended.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-02-2008, 07:11 PM
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#44
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by cute fuzzy bunny
I got married and my wife wanted to keep working part time. We didnt need...or want...the high income level and its associated taxes. With a trickle of an income stream I could also take more chances and be less concerned about volatility. I ended up recently buying back into the fund as our new house, its 2x utilities and property taxes (etc) mean a little more income is useful and we've done well enough that I dont need to keep swinging for the fences.
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That makes a lot of sense. Thanks.
But would you would move your family, including adorable, sweet, bright little Gabe, and live in squalor in rural Alabama if low end housing there happened to be appreciating more there than high end housing where you presently are? OK, that was rhetorical but you get what I'm saying, I think. It seems to me like buying a home is such a complex issue. Many who live in areas that aren't appreciating, really are tied to those areas or prefer to live there for a number of reasons unrelated to investment that may influence their decision to buy there. However astute an investor one may be, there may be regional influences that can't be overcome. Otherwise, I think we would have to agree that Californians are nearly all great investors and Midwesterners mostly aren't, for example. I am not so sure that's a valid generalization.
ETA: Oh, and then I forgot to mention. When my ex was in the Navy, we lived in San Diego. Then we moved to Texas, and sold the house in S.D. (making a killing). When we moved from Texas, we didn't make nearly as much. So, he became a worse investor as he got older? (grin)
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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01-02-2008, 07:22 PM
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#45
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Gone but not forgotten
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 11,447
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Quote:
Originally Posted by Want2retire
Well, if it is an REIT like VGSIX or something, sure - - but if it is your own personal home, it does seem to me that the appreciation could be thought to have a strong regional component. So, althought I'm not trying to speak for the OP I am speculating that investments (rather than real estate such as a home owned in own's local area) is what was intended.
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What if it is several rental properties ? Are they not investments?
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01-02-2008, 07:27 PM
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#46
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 642
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I'd count rental properties.
I'd also personally expect better return for the rentals than from my portfolio, to compensate for the extra time and effort.
[edit]
Or reduced volatility
[/edit]
__________________
"Making deliberate choices about how to spend your money and your time is the essence of making the most of your life energy." -Bill Perkins, Die With Zero
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
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01-02-2008, 07:38 PM
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#47
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,297
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Quote:
Originally Posted by Moemg
What about the members on here who invest in real estate instead of the market ?
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Dunno - Sold 2 little places early in the year for $300k the pair. Bought one 6-89 for 21K, Gal brought the other into our relationship - she and her ex had bought it for $11K when the prior owner was going to raise their rent to $100/month, then she bought out her ex three years later with it valued at $18k. We spent plenty to upgrade them a bunch (complete re-wires, new sheetrock/floor plans), paid them off, rented them out for decades, borrowed against them several times to buy other places, paid them off, kept collecting rent.... When we sold we were getting $685 and $750/month as rent. I do know that we were only negative cash flow a couple years, usually when we had major remodeling/roofing/new loan expenses. Never had consecutive negative years. For us it seems like it was sort of like a Wellesly type fund that returned maybe 5%/year and then sold for 7.5 times the purchase price after 18-20 years.
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01-02-2008, 08:19 PM
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#48
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Quote:
Originally Posted by Want2retire
But would you would move your family, including adorable, sweet, bright little Gabe, and live in squalor in rural Alabama if low end housing there happened to be appreciating more there than high end housing where you presently are?
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Of course not. But I did buy into the bay area, sacramento and yuba city areas when I felt they were underpriced and where I had been living was feeling overpriced.
I certainly made conscious decisions that produced large chunks of positive cashflow. I'd expect to feel like an idiot had it gone the other way and I'd lost money and was looking for a government handout to cover my losses. Given the downside, I also feel its reasonable to accept the upside.
Further, I chose to pay cash for the homes (getting a nice additional discount for closing speed and certainty of close) and use the property as a component of my investing strategy.
Certainly the OP is entitled to discuss things the way they want, and I'm well aware of the emotional issues associated with treating the primary residence as an investment.
But gosh darn it, I've made a bunch of money on every house I ever bought, and lived in them for free all the while!!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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01-02-2008, 08:43 PM
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#49
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by kumquat
Our NW has tripled in the last 5 years. No idea what the return has been. Can't be bothered to look up how to calculate it.
This came by careful AA blind luck whatever (letting one stock become > 50% of NW). (Yes I have sold a lot to diversify but the damn thing keeps going up)
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That's 24.57%.
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01-03-2008, 01:27 PM
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#50
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Full time employment: Posting here.
Join Date: Oct 2007
Posts: 642
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Assuming no outside additions to the portfolio, yes. Otherwise, that's the same mistake the Beardstown Ladies made when calculating their returns...
__________________
"Making deliberate choices about how to spend your money and your time is the essence of making the most of your life energy." -Bill Perkins, Die With Zero
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age
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01-03-2008, 03:15 PM
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#51
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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A shade under 18, actually 17.9%...just didn't load up enough on REIT or foreign stocks........
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Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
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01-04-2008, 03:29 PM
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#52
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Full time employment: Posting here.
Join Date: Jan 2006
Posts: 956
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13.8%
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